NEW DELHI: Telecom giant Vodafone Group is expected to sell its entire $2.3 billion stake in Indus Towers through block deals next week, Reuters reported on Friday quoting sources. The move will be part of the British firm’s effort to repay debt.
Vodafone currently owns 21.5% of mobile-tower operator Indus via different entities, valuing the investment at $2.3 billion as of stock price on June 14. The fresh report comes months after billionaire Sunil Mittal-led Bharti Airtel denied news reports that it was in talks to buy Vodafone Group’s stake in Indus Towers. Bharti Airtel is Indus Towers’ biggest shareholder, with a 47.95% stake.
According to the report, the final size of the stake sale is yet to be decided and could be lower than 21.5% if demand, which is still being assessed, is insufficient. Vodafone has hired Bank of America, Morgan Stanley and BNP Paribas to manage the deal.
Vodafone plans to repay part of its $42.17 billion net debt using proceeds from Indus stake sale, added the report. The company in 2022 had announced it would be offloading its entire 28% stake, but has managed to sell only a small portion so far
Indus Towers, the country’s largest telecom tower provider, recently reported profit of Rs 1,853 crore for the quarter ended March 2024, an increase by 32.4% year-on-year. The company’s revenues rose 6.5% to Rs 7,193 crore in the same period.
The company provides masts for mobile and data connectivity to all telecom service providers in the country. Its primary customers are Bharti Airtel and Vodafone Idea, the second and third largest carriers.